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Redundancy and final pay
Worksheet under the Labour Act 2003 (Act 651) and a letter asking for the final settlement
Employee: [YOUR NAME]
Employer: [EMPLOYER NAME]
Employed: [FIRST DAY] to [LAST DAY]
1. My numbers
What Value
Monthly pay (normal remuneration, no overtime) GH₵ [AMOUNT]
Years of service [YEARS]
Notice paid in lieu? [YES / NO]
Annual leave days a year / taken this year [DAYS] / [DAYS]
Months worked this calendar year [MONTHS]
Redundancy pay agreed: weeks per year of service [WEEKS]
Unpaid salary and other pay owed GH₵ [AMOUNT]
2. The calculation
Step Amount
Weekly pay = monthly × 12 ÷ 52 GH₵ [AMOUNT]
Pay in lieu of notice (s. 17): 1 month if 3 years or more, otherwise 2 weeks GH₵ [AMOUNT]
Leave earned this year (s. 30): [DAYS] days × daily rate [AMOUNT] GH₵ [AMOUNT]
Redundancy pay (s. 65): agreed weeks × years × weekly pay GH₵ [AMOUNT]
Unpaid salary and other pay owed (s. 18) GH₵ [AMOUNT]
Total to ask for GH₵ [TOTAL]
What the Labour Act 2003 (Act 651) says • s. 17: one month's notice or a month's pay in lieu for a contract of three years or more; two weeks for less than three years; in writing. • s. 18: remuneration earned, deferred pay and compensation for sickness or accident are paid not later than the next working day after termination. • s. 30: annual leave in proportion to the service in the calendar year, and pay in lieu of notice, are not lost when employment ends. • s. 65: the employer informs the Chief Labour Officer and the union at least three months before; redundancy pay is negotiated; disputes go to the National Labour Commission. • s. 66: not for fixed-term, probation or casual workers. A collective agreement with better terms prevails (s. 19).
3. Letter asking for my final settlement
[YOUR NAME]
[YOUR ADDRESS OR GHANA POST GPS]
[DATE]
The Human Resource Manager
[EMPLOYER NAME]
[EMPLOYER ADDRESS]
Subject: Redundancy — final settlement and redundancy pay
Dear Sir/Madam,
I refer to your letter of [DATE OF NOTICE] informing me that my position as [JOB TITLE] will end on [LAST DAY] because of [REASON]. Before that date I would be grateful for a written breakdown of my final settlement.
Based on the Labour Act, 2003 (Act 651) and my records, I calculate the following:
pay in lieu of notice under section 17 — GH₵ [AMOUNT];
annual leave earned this year under section 30 — [DAYS] days, GH₵ [AMOUNT];
unpaid salary and other pay owed under section 18 — GH₵ [AMOUNT];
redundancy pay under section 65 at [WEEKS] weeks' pay per year of service — GH₵ [AMOUNT].
Total: GH₵ [TOTAL].
As section 65(4) provides that the amount and terms of redundancy pay are negotiated, I would like to meet with you and my union representative to agree them in writing. I also ask that remuneration earned before termination be paid not later than the next working day after my last day, as section 18 requires.
Please reply by [REPLY BY DATE]. Thank you for the years of work together.
Yours faithfully,
[YOUR NAME]
[PHONE]
If you cannot agree 1. Keep your appointment letter, payslips, leave record and this worksheet together. 2. Ask your union to negotiate with you; a collective agreement with better terms prevails (s. 19). 3. A dispute about redundancy pay may be referred to the National Labour Commission (s. 65(5)). 4. Ask about your SSNIT and Tier 2 statements — they are separate from the settlement.
A worksheet, not legal advice. Labour Act, 2003 (Act 651), checked 21 October 2026. The Act does not fix the amount of redundancy pay; the weeks per year are your agreement.